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Why would you buy a record high?
The S&P 500 may have reached 1,800 for the first time, putting the benchmark index on track for its best annual gain in 15 years, but trader Serge Berger says it’s still a buy. But he explains it’s a "pure momentum trade" and is not looking to go "all in" in a long term investment.
Serge says that with the S&P 500 now above that level, he will be looking to trade breakouts into year end, and adds that the window towards 1,820 and 1,850 looks to be wide open.
But he thinks there is a better (5 - 15 percent) correction around the corner in the coming months.
The US stock market has been propelled higher by a combination of solid corporate earnings, a steadily strengthening economy and the Federal Reserve's easy-money monetary policy.
The S&P 500, which is home to large companies that account for roughly 70 percent of the entire value of the US stock market, has now topped 1600, 1700 and 1800 this year for the first time, after waiting more than 13 years to climb from 1500 to 1600.
Read more about Serge Berger’s predictions here:
http://www.tradingfloor.com/posts/us-stocks-sp-500-breaks-1800-mark-851114233
01:49 minutes
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